Each year, the World Economic Forum (WEF) publishes its Global Risk Report, a meticulously researched document that outlines the most pressing risks facing the world. For internal auditors and risk managers, I believe this report is more than just an academic exercise—it is an essential tool for understanding the forces and looming risks shaping the external environment in which our organizations operate. The 2025 edition is no exception. In fact, its themes and findings once again make it an essential tool for those charged with helping their organizations navigate the risks and opportunities that lie ahead.

As I have advocated for years, in order to preserve and create value, organizations must successfully navigate an increasingly volatile, interconnected, and complex global environment. Enterprise risk managers and internal are vital to success in the ongoing era of permacrisis, and they have a vital tool in the 2025 Global Risk Report.

At a high level, this year’s report once again zeros in on the risks the world faces in the year ahead. This year’s Top 10 are:

1. Misinformation and disinformation
2. Extreme weather events
3. State-based armed conflict
4. Societal polarization
5. Cyber espionage and warfare
6. Pollution and inequality
7. Inequality
8. Involuntary migration or displacement
9. Geoeconomic confrontation
10. Erosion of human rights and/or civic freedoms

Many of these risks will find their way into boardrooms, supply chains, and operational processes in the year ahead. Understanding these risks isn’t just about staying informed; it’s about fulfilling our role as trusted advisors to our organizations. For this reason, the 2025 Global Risk Report is a vital resource for internal auditors and risk managers to better enable us to elevate our value to the organizations we serve.

As I reflect on the findings in the 2025 Global Risk Report, there are at least five reasons why it is the first “must read” source for internal auditors in the new year:

1. It Provides A Window into the Future of Risk

The Global Risk Report is unique in its scope and depth. Compiled through input from hundreds of experts and stakeholders, it synthesizes global trends into a coherent picture of future risk landscapes. The 2025 report identifies several megatrends that demand immediate attention from internal auditors, including:

• Geopolitical Fragmentation: Rising tensions among global powers are disrupting supply chains, trade agreements, and international collaboration. This fragmentation has direct implications for business continuity, regulatory compliance, and strategic planning.
• Climate-Driven Disruption: Extreme weather events, water scarcity, and the accelerating transition to a low-carbon economy are creating new challenges for organizations, particularly those in energy-intensive or resource-dependent industries.
• Technological Risks: As artificial intelligence and other emerging technologies become more pervasive, risks such as data breaches, algorithmic bias, and cyberattacks are escalating.
• Social Inequities and Labor Challenges: Economic disparities, changing workforce expectations, and demographic shifts are affecting employee morale, productivity, and corporate reputations.

For internal auditors, these trends are not abstract concepts. They translate into tangible risks, such as regulatory penalties, reputational damage, and operational disruptions. By understanding these risks early, auditors can help their organizations develop more resilient strategies.

2. Bridging the Gap Between Strategy and Risk Management

One of the most critical roles of internal auditors is to bridge the gap between an organization’s strategic objectives and its risk management practices. The 2025 Global Risk Report provides a framework for doing just that. By aligning the risks identified in the report with the organization’s strategic goals, internal auditors can:

• Enhance Risk Assessments: Use the report’s findings to update risk assessments and ensure they reflect emerging global trends.
• Advise on Strategic Decisions: Provide informed recommendations to leadership on how to navigate risks such as geopolitical tensions, climate regulations, or technological disruptions.
• Support Long-Term Resilience: Help the organization anticipate and prepare for systemic risks, such as supply chain vulnerabilities or regulatory shifts.

For example, if the report highlights increasing scrutiny of carbon emissions, internal auditors can assess whether their organization’s sustainability initiatives are aligned with regulatory expectations and stakeholder demands. In doing so, we not only protect the organization but also position ourselves as trusted advisors in the boardroom.

3. The Rise of Interconnected Risks

One of the key messages in the 2025 Global Risk Report is the interconnected nature of today’s challenges. Risks that may seem unrelated—such as climate change, cyberattacks, and social unrest—are increasingly interdependent. For internal auditors, and risk managers, this interconnectedness demands a more holistic approach to risk management.

Consider the example of a manufacturing organization facing supply chain disruptions due to extreme weather events. The immediate impact might be delayed production, but the ripple effects could include:

• Financial losses due to missed revenue targets.
• Legal risks arising from contract breaches.
• Reputational damage if customers or partners lose confidence.

By understanding these interdependencies, internal auditors can identify root causes, recommend comprehensive mitigation strategies, and help their organizations adapt to cascading risks.

4. A Catalyst for Collaboration

The Global Risk Report also highlights the importance of cross-sector collaboration in addressing systemic risks. This message is particularly relevant for internal auditors, as our role often requires us to work across departments and functions.

For example, responding to cyber risks is not solely the responsibility of the IT department. It requires collaboration with legal, compliance, HR, and external partners. Internal auditors can act as facilitators, breaking down silos and ensuring that risk mitigation efforts are coordinated and aligned.

Moreover, the report’s emphasis on collaboration aligns with the growing expectation that businesses will contribute to solving global challenges. Internal auditors can help their organizations meet this expectation by:

• Encouraging transparency in reporting on ESG (environmental, social, and governance) initiatives.
• Assessing the effectiveness of partnerships with external stakeholders.
• Identifying opportunities to align business goals with broader societal objectives.

5. Staying Ahead of Stakeholder Expectations

Stakeholders—including investors, regulators, and customers—are increasingly demanding that organizations address global risks proactively. The Global Risk Report provides internal auditors with a roadmap for meeting these expectations. By leveraging the report’s insights, we can:

• Inform Stakeholder Communications: Ensure that risk disclosures in financial statements and sustainability reports are comprehensive and credible.
• Evaluate Governance Practices: Assess whether the board and executive leadership are adequately prepared to address emerging risks.
• Drive Accountability: Monitor the organization’s progress in implementing risk mitigation strategies and meeting stakeholder commitments.

In a world where trust is a currency, internal auditors play a pivotal role in ensuring that organizations earn and maintain the confidence of their stakeholders.

The risks outlined in the 2025 Global Risk Report are not just theoretical—they are already shaping the business landscape. For internal auditors, understanding these risks is the first step. The real value lies in translating insights into action: updating risk assessments, advising on strategy, fostering collaboration, and holding the organization accountable.

In doing so, we not only fulfill our professional responsibilities but also contribute to a greater purpose: helping our organizations navigate uncertainty with resilience, integrity, and vision. As we move forward, let us embrace the lessons of the Global Risk Report and reaffirm our commitment to being trusted advisors in an ever-changing world.

After all, the future of internal audit is not just about providing risk assurance—it’s about enabling success.